Analysis Of Reduction And "Tunneling" Behaviors Of Tongzhou Electronic's Major Shareholder

The agency problem has always been between the management and the shareholders.When researching the principal-agent problem,most people have focused their attention on the cost of conflict between management and shareholders.However,in recent decades,The principal-agent problem between large shareholders and small and medium shareholders has received more and more attention from scholars.In my country,listed companies generally have the characteristics of relatively concentrated equity,which makes domestic listed companies face too many shares held by large shareholders,and the greater the power they have,the stronger the incentive for large shareholders to encroach on the interests of small and medium shareholders.According to the current economic situation,China's economic systems and policies have not been well established,and the regulatory body has not clearly defined the issue of large shareholders' encroachment on the interests of small and medium shareholders.Under this background,large shareholders may use stock price manipulation The way of large-scale pledge when the stock price rises,so that you can get more funds.Severe equity pledges make splits appear more and more frequently between the cash flow power and the control rights of the large shareholders.When the separation of these two rights is serious,it will aggravate the possibility of illegal operations by the large shareholders,thereby jeopardizing interests.Interests of related parties.It can be seen that the pledge behavior of large shareholders based on hollowing out motives of "equity-for-debt" deserves our special attention.Therefore,it is of great theoretical significance to analyze the motivation and related economic consequences of large shareholders' hollowing out behaviors,to identify and prevent large shareholders' hollowing out behaviors,and to protect the interests of small and medium shareholders.This article uses literature research,statistical analysis,and case analysis to analyze the case in an all-round way.In the case of this article,in order to save performance,the company looks for different opportunities and channels to break through the bottleneck.Since no suitable opportunity has been found,The company did not come out of the sluggish performance,and wasted too much resources on the way of trial and error.The big shareholder Yuan Ming of Tongzhou Electronics could not sell a large number of restricted shares,so he used the company's internal check and balance structure to be imperfect.,The major shareholder grasped the situation of absolute control,and successively pledged the restricted sales of shares to cause the stock price to burst.Electronic control transfer.This kind of behavior infringes on the interests of small and medium shareholders,and accelerates the breaking of the company's capital circulation chain.It not only allows the large shareholders to embezzle,but also seriously affects the corporate brand image and promotes the abnormal development of the stock market.Investigate the reasons for the reduction of holdings.When analyzing the problems in China's current capital securities market,everyone is concerned and criticized is the problem of illegal reduction of holdings.If the large shareholders take profits from the company in an illegal way,the amount of punishment they receive Compared with the gains it obtains,it is a dime,so in the face of huge benefits,the controlling shareholder will choose to take a risk reduction.On the other hand,due to the lag of information transmission to the market,Tongzhou Electronics' stock price is artificially high,and the major shareholders have sufficient time difference to obtain the difference income,that is,the company's internal shares that affect the stock price are sold to the market before the company's shares are sold.Off.This article uses the calculation of Tobin's Q value method.After Yuan Ming's "arbitration" agreement cashed out,the stock price of the shares held by the small and medium shareholders fell into a trough,and their rights and interests were seriously violated.On the other hand,due to the company's lack of stable cash flow,it has been one of the important reasons for the company's zero dividend since 2013.The reduction of major shareholders of Tongzhou Electronics also caused fluctuations in the main financial indicators of the company.This paper analyzes the changes in the three indicators of debt repayment ability,operating ability,and profitability to find out that the pledge of large shareholders' equity has indeed affected the development of Tongzhou Electronics' business operations.According to the ideas in this article,we first analyze Tongzhou Electronics' shareholding reduction process,then analyze its economic consequences and motivations,and finally put forward opinions on such matters from the market,small and medium shareholders,and major shareholders,and reduce this occurrence in the future.Possibility of similar matters.